TNB gears up for Regulatory Period 4 with significant capex

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) is preparing for Regulatory Period 4 (RP4) 2025-2027 with significant capital expenditure (capex) to support Malaysia’s energy transition and projected electricity demand growth

“We are ready to execute exciting programmes within NETR, ensuring Malaysia achieves its energy transition goals. With TNB leading the charge, we are confident in fostering a sustainable, resilient, and prosperous future for all,” president/CEO Datuk Ir. Megat Jalaluddin Megat Hassan said in a statement.

TNB is leading three key large-scale RE and clean technology initiatives in National Energy Transition Roadmap (NETR): centralised large-scale solar (LSS) parks, hybrid hydro floating solar (HHFS), and hydrogen and ammonia co-firing projects.

According to the utility giant, these initiatives aim to deliver over 3,000MW of renewable energy capacity by 2040, with around 2,500MW from HHFS technology and an additional 500MW from five different LSS parks.

TNB plans to install HHFS up to 230MW capacity at the Temenggor and Chenderoh hydro plants by 2025, and the company is exploring a 100MW ground-mounted solar project in Perak.

Megat said TNB is committed to driving growth and net zero targets with its energy transition plan.

“By focusing on energy sources, energy vector, and energy usage, we aim to provide clean energy, build transition networks, and promote dynamic solutions.”

In 2023, TNB’s revenue grew by 4.3% to RM53.07bil, thanks to a 3.8% increase in electricity demand in Peninsular Malaysia and Sabah.

“Our ability to meet rising energy needs effectively, along with an RM2.66bil dividend payout, with 66.6% of the dividend distributed to government-linked investment companies (GLICs), underscores our commitment to shareholder value,” chairman Datuk Abdul Razak Abdul Majid said at TNB’s 34th annual general meeting today.

He noted that Malaysia’s electricity demand growth, an indicator of the country’s economic performance, showed a 3.8% year-on-year (YoY) increase in Peninsular Malaysia and Sabah, compared to the previous year’s 6.1%.

“We are at the forefront of advancing these objectives through pivotal flagship projects outlined in the NETR. These initiatives will increase renewable energy (RE) gradually, reinforcing our leadership in sustainable energy solutions,” Abdul Razak said.